2007-10-16

How to Value Shares(7)

None of these tools is perfect

None of these tools is perfect as a valuation device,

but they are definitely superior to just carrying out judgement by speculating.

When there is any doubt, moderation should be employed in the choice of the right

i) P/E ratio,

ii) dividend yield, or

iii) net asset value.

It is also advisable to find out the reasons behind the magnitudes of the figures you deal with.



By David Opoku

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